Russian Company Explodes on the Home Improvement Scene

Tvoy Dom (Tvoj Dom TK)

Customer Snapshot:Overview

98% Reduction in order generation cycle time

Tvoy Dom helps Russians furnish their homes – and do it themselves – with a chain of hypermarkets that sell everything from beds to bathroom fixtures. With hundreds of thousands of products in stock and plans for future expansion, this company has a lot to manage. That’s why Tvoy Dom chose SAP for Retail solutions to drive improved inventory control and lower operating costs.

Customer Snapshot:History

1998

Tvoy Dom opened their first shopping center on one of Moscow’s famous ring roads.

2001

Tvoy Dom’s unique “Your Home” shopping experience earned the trust of Russian consumers, and a second shopping center opened their doors.

2009

Tvoy Dom began regional expansion with a new location in Voronezh, about 300 miles south of Moscow. It was Voronezh’s first “everything for the home” store.

2010

New furniture showrooms were added to the shopping experience, as well as space for unique indoor plants and a gardening complex.

2012

A new “Express” store format opened that offered faster shopping in a smaller, more convenient retail space.

Customer Snapshot:Business Model

Everything for “Your Home”

Tvoy Dom means “your home” in Russian, and the company’s product inventory seems as vast as the country itself. This Moscow-based retail chain sells everything from home repair products and garden supplies to interior design services, furniture, and food.

Customer Snapshot:Success Strategy

Branching Out

Tvoy Dom knows that a large selection of products and competitive pricing are key to their ongoing success, and the company continues to expand and to innovate. For example, the chain has launched two major retail initiatives. One is the sale of exclusive furniture collections. The other is a unique gardening complex that offers consumers a choice of more than 10,000 plants and trees. The display of plants is one of the largest in Russia.

Today, retail spending in Russia is climbing as consumer spending power in the country continues to grow. Tvoy Dom has specific plans for opening more than a half dozen new branches in several cities.

The Challenge

Enabling a Strategic Vision

To enable their strategic vision, the retailer first had to replace a collection of stand-alone business systems, scattered databases, and poorly integrated IT processes. Tvoy Dom’s disconnected business systems often led to poor visibility and costly delays in everyday activities such as purchase approval, order processing, and inventory revaluation.

The appearance of other big-box stores in Russia means increased competition. This competitive environment demands first-class inventory control and efficient business processes that can reduce operational costs.

Enter SAP

Choosing Solutions Built for the Industry

Tvoy Dom welcomed the SAP for Retail solution portfolio as a perfect fit for the company’s needs. The retailer appreciated the software’s comprehensive support for industry-specific business processes and its high degree of scalability – particularly important to a company looking to expand. Tvoy Dom was also aware of other successful SAP implementations throughout the Russian retail industry.

Enter SAP:The SAP Experience

Phased Rollouts to Minimize Risk

Tvoy Dom worked closely with their implementation partner, CIBER Inc, to ensure a successful rollout. The team followed the ASAP implementation methodology developed by SAP and approached the project in two phases. Tvoy Dom first set up new systems at the company’s headquarters to establish the production environment. This was followed by rollouts at the company’s two large branch stores.

Better Business

The Home of Process Improvement

Tvoy Dom is now the home of process improvement. Improved planning and streamlined approval processes. For example, the company has boosted efficiency in operations from finance to purchasing. In fact, Tvoy Dom has reduced cycle times and cut labor costs in several key business areas. And company executives report a significant reduction in terminal stock.

We can now make faster business adjustments, better decisions, and manage our large inventories with greater efficiency.-Yuri Zhikov, Chief Information Officer, Tvoy Dom

Better Business:Benefits

Measuring Greater Efficiency

Other business benefits include greater operational visibility and more reliable reporting. Business reports that once took 48 hours to generate are available to managers in as few as 2 minutes. This immediate insight is driving better decision making across the enterprise, leading to:

30%

Reduction in terminal stock

98%

Reduction in order generation cycle time

90%

Reduction in inventory revaluation cycle time

Better Business:Run Simple

Driving Improvements at a Growing Superstore

Today, more than 400 users are directly using the SAP solutions to cut time and cost from key business processes. From a strategic perspective, Tvoy Dom’s consolidated data and scalable business systems provide better support for the company’s growth plans.

We can bring a retail site onto our SAP business systems in about 10 hours. On our old systems, it could take us a month to do that.-Yuri Zhikov, Chief Information Officer, Tvoy Dom

Journey Ahead

Continued Expansion in the World’s Largest Country

Experts predict that the next few years will see a significant increase in the number of the nation’s big-box stores. Tvoy Dom plans to play a big part in that expansion. Additional SAP software is also in Tvoy Dom’s future. This includes rollouts of the SAP Customer Relationship Management application and the SAP Business Planning and Consolidation application.

With its borders stretching from Scandinavia to the Bering Sea, Russia is the largest country in the world. That’s a good thing. Now that Tvoy Dom has the scalable business systems they need to support their large aspirations, there’s plenty of room to grow.